Sika Ag · SIX:SIKA
Sika — H1 2021 Earnings Presentation
24 slides from Sika's earnings presentation, September 2021
Slide 1: Record Results in First Half of 2021: Strong Growth in Sales and EBIT
RECORD RESULTS IN FIRST HALF OF 2021 STRONG GROWTH IN SALES AND EBIT SIKA INVESTOR PRESENTATION SEPTEMBER 2021
Slide 2: 1. Half-Year Results 2021
1. HALF-YEAR RESULTS 2021 ® BUILDING TRUST By
Slide 3: Record Results in the First Half of 2021
RECORD RESULTS IN THE FIRST HALF OF 2021 GROWTH IN LOCAL CURRENCIES OF 23.5% ̶ EBIT-GROWTH OF 67.2% 1. Sales and profit ▪ Sales growth of 23.5% in local currencies. Record sales of CHF 4,448.7 million (+23.1% in CHF). ▪ Record operating profit (EBIT) at CHF 685.9 million (+67.2%) ▪ Record EBIT-margi
Slide 4: Key Investments 2021: Acquisitions YTD
KEY INVESTMENTS 2021 ACQUISITIONS YTD Acquisition of Kreps, Russia Acquisition of BR Massa, Brazil Acquisition of DriTac, USA Acquisition of Hamatite, Japan (February 2021) (March 2021) (March 2021) (April, Closing in Q4 2021) Acquisition of American Acquisition of Bexel, Mexico Acquisition of Landu
Slide 5: Sika Acquires North American Market Leader in Green Roofs American Hydrotech
SIKA ACQUIRES NORTH AMERICAN MARKET LEADER IN GREEN ROOFS AMERICAN HYDROTECH ▪ Annual sales of CHF 83 million ▪ Sika and Hydrotech with combined market share of over 30% in green roofs in North America and clear number 1 position ▪ Additional growth platform in fastgrowing Vancouver Public Library,
Slide 6: Record Results in the First Half of 2021: Strong Performance on All Levels
RECORD RESULTS IN THE FIRST HALF OF 2021 STRONG PERFORMANCE ON ALL LEVELS in CHF mn 2020 NS 2021 NS Growth Net sales 3,614.6 100% 4,448.7 100% 23.1% Gross result 1,973.2 54.6% 2,372.8 53.3% 20.3% Personnel expenses -748.5 -20.7% -813.3 -18.3% Other OPEX -631.1 -17.5% -692.5 -15.5% EBITDA 593.6 16.4%
Slide 7: 23.5% Sales Growth in Local Currencies
RECORD RESULTS IN THE FIRST HALF OF 2021 23.5% SALES GROWTH IN LOCAL CURRENCIES 23.5% 1.1% 2.9% 9.6% 22.4% 6.5% 13.4% in LC 3.1% acquisition organic -10.5% in CHF mn 1 HY 2019 1 HY 2020 1 HY 2021 Sales 3,732.4 3,614.6 4,448.7 7
Slide 8: Strong Organic Growth in All Regions
RECORD RESULTS IN THE FIRST HALF OF 2021 STRONG ORGANIC GROWTH IN ALL REGIONS +25.2% +15.8% +26.4% +26.4% Growth in CHF +24.1% +19.5% +26.0% +27.6% Growth in LC +1.1% -3.7% +0.4% -1.2% FX impact +2.2% +0.5% +0.0% +0.0% Acquisition 19% 81% Construction Industry 8 EMEA Americas Asia/Pacific Global Bus
Slide 9: Strong Sales Growth in All Regions
STRONG SALES GROWTH IN ALL REGIONS 23.5% GROWTH IN LC (23.1% IN CHF) FOR FIRST HALF OF 2021 +19.5% +24.1% +26.0% 1’101 +27.6% 961 2’036 351 Americas Asia/Pacific Global Business EMEA 6M 2020 6M 2021 (in CHF mn, growth in LC) 9
Slide 10: Sika's Growth Model Delivers Record Results in the First Half of 2021
SIKA’S GROWTH MODEL DELIVERS RECORD RESULTS IN THE FIRST HALF OF 2021 Net NETSales SALES +23.5% Net EBIT Profit NET SALES in CHF mn, growth in LC in CHF mn +9.6% +2.9% +13.9% +8.1% 4,448.7 685.9 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 10
Slide 11: 2. Resilient Growth Strategy 2023
2. RESILIENT GROWTH STRATEGY 2023
Slide 12: Resilient Strategy – Major Megatrends Supporting Growth
RESILIENT STRATEGY – MAJOR MEGATRENDS SUPPORTING GROWTH FURTHER ACCELERATION DESPITE PANDEMIC Technological Climate Change and Urbanization Progress Scarcity of Resources Demographic Dynamic Change Economy 12
Slide 13: Resilient Growth Strategy 2023: Strategic Targets Confirmed Despite Pandemic
RESILIENT GROWTH STRATEGY 2023 STRATEGIC TARGETS CONFIRMED DESPITE PANDEMIC SUSTAINABILITY Market Penetration 6-8% annual growth 15-18% EBIT margin Until 2020: <15% Innovation Operational Efficiency 25% of sales with new >10% products Operating free cash flow per year as % of net sales Acquisitions
Slide 14: 3. Sika as Enabler
3. SIKA AS ENABLER ® BUILDING TRUST By
Slide 15: Sika as Enabler for a Sustainable Future
SIKA AS ENABLER FOR A SUSTAINABLE FUTURE Construction Automotive 40% of global CO2 emissions Road traffic responsible for attributable to construction fifth of global greenhouse and building sector gases Huge opportunity as potential for progress is immense Sika offers the solutions and has the inno
Slide 16: Saving Resources with Innovative Roofing Solutions
SIKA AS ENABLER SAVING RESOURCES WITH INNOVATIVE ROOFING SOLUTIONS ▪ Sika Sarnafil® AT is first Cradle to Cradle CertifiedTM Membrane worldwide ▪ Recycling of roof membranes saves resources and reduces burden on climate ▪ Used roof membranes are retrieved and processed into granular material. Recycl
Slide 17: Clean Water for Millions of People
SIKA AS ENABLER CLEAN WATER FOR MILLIONS OF PEOPLE ▪ Demand for drinking water and wastewater treatment facilities is increasing rapidly ▪ Sika has innovative solutions to prevent leaks and protect water quality in these facilities – for new construction and maintenance ▪ Sika waterproofing systems
Slide 18: reCO2ver – Concrete Recycling
SIKA AS ENABLER reCO2ver – CONCRETE RECYCLING Sika’s new patented recycling process for old concrete Sika’s new recycling process for old Sika Additive concrete separates Demolished Concrete the components completely Sand They can be re-used for new high-grade Limestone concrete + stored CO2 This fu
Slide 19: Heat Loss Reduction by 35%
SIKA AS ENABLER HEAT LOSS REDUCTION BY 35% Examples of Sika applications and products for sustainable buildings Where heat escapes 26% Roofs Roofing systems 33% Walls Facades 21% Windows & Doors 8% Floor Windows & Doors Flooring 12% Ventilation Interior Finishing 35% Waterproofing of heat loss reduc
Slide 20: Community Engagement: Strong Global Engagement During the Pandemic
COMMUNITY ENGAGEMENT STRONG GLOBAL ENGAGEMENT DURING THE PANDEMIC Education Infrastructure Water and climate Library Project, China Kovive Child welfare Zona Cero, Chile Rebuilding together, USA ▪ 6th year organization, Switzerland ▪ Involvement in the project ▪ For over 10 years ▪ Donation of over
Slide 21: 4. Outlook
4. OUTLOOK ® BUILDING TRUST By
Slide 22: Annual Target Raised for Fiscal Year 2021
ANNUAL TARGET RAISED FOR FISCAL YEAR 2021 CONTINUATION OF SUCCESSFUL GROWTH STRATEGY ▪ Outlook for 2021 fiscal year ▪ Sales growth in local currencies between 13 and 17% (previous: double-digit sales growth in local currencies) ▪ Over-proportional EBIT increase ▪ The EBIT margin will reach 15% for t
Slide 23: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION
Slide 24: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation contains certain forward-looking statements. These forward-looking statements may be identified by words such as ‘expects’, ‘believes’, ‘estimates’, ‘anticipates’, ‘projects’, ‘intends’, ‘should’, ‘seeks’, ‘future’ or similar expressions or by discussion o